ORIX JREIT Inc. (8954) AI Stock Analysis

• Market Cap: ¥582.36B
• Dividend Yield: 4.08%
• Average Volume (3M): 11.36K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.17
• Revenue Growth: -31.88%
• EPS Growth: 2.02%
• Country: JP
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 2264.00
• Shares Outstanding: 5,520,000
• 10 Day Avg. Volume: 7,940
• 30 Day Avg. Volume: 11,355
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥103,000.00
• Price Target Upside: -1.53% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥117,857 ▲(12.67% Upside)

The overall stock score of 70.5 reflects strong financial performance and positive technical indicators. The company's stable profitability and efficient operations are significant strengths, although recent revenue declines and cash flow variability are concerns. The stock's valuation suggests it may be slightly overvalued, but the attractive dividend yield provides a compensating factor.

Positive Factors

Stable Profitability

Consistent profitability indicates strong operational efficiency and the ability to maintain margins, which is crucial for long-term financial health.

Solid Balance Sheet

A strong balance sheet with manageable leverage ensures financial stability and flexibility, supporting sustainable growth and investment opportunities.

Strong Operating Cash Flow

Robust operating cash flow supports ongoing operations and investments, providing a buffer against revenue fluctuations and ensuring liquidity.

Negative Factors

Revenue Decline

Declining revenue can impact growth prospects and profitability, necessitating strategic adjustments to stabilize and enhance income streams.

Free Cash Flow Variability

Variability in free cash flow can limit the company's ability to fund new projects or return capital to shareholders, affecting long-term financial planning.

Revenue Growth Challenges

Challenges in revenue growth can hinder the company's ability to expand and compete, requiring strategic initiatives to drive future performance.

ORIX JREIT Inc. Business Overview & Revenue Model

Company Description

OJR was established on September 10, 2001, and was listed and commenced trading on the Tokyo Stock Exchange on June 12, 2002 as the fourth Real Estate Investment Trust in Japan, or "JREIT," to be listed. A JREIT is an externally managed property fund formed under the Act on Investment Trusts and Investment Corporations of Japan. ORIX Asset Management Corporation, a wholly owned subsidiary of ORIX Corporation (TSE: 8591, NYSE: IX (ADR)), is the asset manager of OJR.OJR is a diversified JREIT that invests in office buildings, retail facilities, residential properties, logistics facilities, and hotels and others, aiming to provide stable cash flow and healthy asset growth over the medium to long term.

How the Company Makes Money

ORIX JREIT generates revenue primarily through rental income from its diverse portfolio of properties. The company leases its properties to tenants, which provides a stable cash flow stream. Additionally, ORIX JREIT may benefit from capital appreciation of its real estate assets over time, which can enhance its overall value and returns to investors. The company also engages in strategic partnerships and collaborations within the real estate sector, which can lead to increased investment opportunities and operational efficiencies. Factors such as market demand for commercial and residential spaces, occupancy rates, and lease agreements play a critical role in influencing its earnings.

ORIX JREIT Inc. Financial Statement Overview

Summary

ORIX JREIT Inc. demonstrates strong profitability and efficient operations, with stable margins and a solid balance sheet. However, recent revenue declines and variability in free cash flow growth pose potential risks. Overall, the company maintains a robust financial position with areas for improvement in revenue generation and cash flow stability.

Income Statement

The income statement shows a stable gross profit margin and net profit margin over the years, indicating consistent profitability. However, the recent revenue decline of 6.04% suggests potential challenges in revenue generation. EBIT and EBITDA margins remain strong, reflecting efficient operations.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio and a stable equity ratio. Return on equity is consistent, indicating effective use of equity to generate profits. The company's leverage is within acceptable limits for the industry.

Cash Flow

The cash flow statement indicates a significant decline in free cash flow growth, which could be a concern. However, the operating cash flow remains strong, covering net income adequately. The free cash flow to net income ratio has fluctuated, suggesting variability in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.01B	51.69B	55.01B	51.37B	49.86B	47.22B
Gross Profit	28.71B	25.42B	28.71B	24.83B	27.03B	25.55B
EBITDA	33.03B	32.14B	32.57B	32.82B	31.07B	29.63B
Net Income	22.52B	22.52B	23.05B	19.05B	21.13B	19.46B
Balance Sheet
Total Assets	685.77B	685.77B	685.00B	677.84B	682.98B	684.45B
Cash, Cash Equivalents and Short-Term Investments	21.15B	26.80B	21.15B	42.07B	50.41B	48.97B
Total Debt	296.20B	296.20B	297.09B	292.09B	294.54B	297.64B
Total Liabilities	335.47B	335.48B	335.18B	329.96B	332.30B	335.54B
Stockholders Equity	350.30B	350.30B	349.82B	347.87B	350.68B	348.91B
Cash Flow
Free Cash Flow	-1.19B	38.90B	-4.18B	17.63B	23.80B	16.17B
Operating Cash Flow	38.90B	38.90B	58.80B	36.61B	36.17B	27.19B
Investing Cash Flow	-38.96B	-38.96B	-59.78B	-19.59B	-12.33B	-10.80B
Financing Cash Flow	-17.24B	-17.24B	-16.14B	-24.30B	-22.45B	-13.70B

ORIX JREIT Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 104600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8954, the sentiment is Neutral. The current price of 104600 is below the 20-day moving average (MA) of 106310.00, above the 50-day MA of 103240.00, and above the 200-day MA of 93782.65, indicating a neutral trend. The MACD of 647.56 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 27.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8954.

ORIX JREIT Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8952	72 Outperform	¥932.69B	25.44	6.59%	3.82%	-1.97%	-2.16%
8954	71 Outperform	¥582.36B	16.87	―	4.08%	-31.88%	2.02%
8987	67 Neutral	¥198.64B	24.10	―	3.80%	64.38%	0.79%
8958	66 Neutral	¥141.71B	16.72	―	5.73%	90.94%	40.39%
8975	65 Neutral	¥152.72B	16.65	―	6.01%	44.45%	40.59%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
8976	64 Neutral	¥359.65B	25.47	―	3.93%	19.18%	-23.37%

ORIX JREIT Inc. Corporate Events

ORIX JREIT Secures New Debt Financing for Loan Refinancing

ORIX JREIT Inc. has announced a new debt financing arrangement with the Development Bank of Japan Inc., securing a loan of 3,000 million yen at a fixed interest rate of 1.229%. The proceeds from this financing will be used to refinance existing long-term loans, maintaining the company’s interest-bearing liabilities and loan-to-value ratio unchanged. This move is part of ORIX JREIT’s ongoing financial strategy to optimize its capital structure and ensure stable financial operations.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Announces Investment Unit Split and Forecast Revision

ORIX JREIT Inc. announced a two-for-one split of its investment units to enhance liquidity and attract more individual investors, aligning with the new Nippon Individual Savings Account and Tokyo Stock Exchange guidelines. This move also led to a revision of the forecasted distributions per unit for the fiscal period ending February 28, 2026, reflecting the split ratio but not affecting the overall financial outlook due to minimal associated costs.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Inc. Completes Strategic Asset Disposition

ORIX JREIT Inc. has announced the disposition of its investment units in FJ Private REIT Corporation, marking the completion of its investment objectives. The decision to sell these units, amounting to a gain of 4 million yen, reflects the company’s strategic move to optimize its asset portfolio without impacting its earnings forecast.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Secures New Debt Financing with Sustainability Focus

ORIX JREIT Inc. announced new debt financing totaling 7,750 million yen, with loans from MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation. This financing includes a sustainability-linked loan, reflecting the company’s commitment to sustainable business practices. The proceeds will be used to refinance existing long-term loans, with no change in the company’s interest-bearing liabilities or loan-to-value ratio. This move is expected to support ORIX JREIT’s financial stability and sustainability goals, maintaining its position in the real estate investment market.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.

ORIX JREIT Inc. Announces Strategic Acquisition by ORIX Real Estate Corporation

ORIX JREIT Inc. announced that ORIX Real Estate Corporation, a subsidiary of ORIX Corporation, plans to acquire up to 55,200 investment units of ORIX JREIT. This acquisition aims to align the interests of ORIX JREIT’s unitholders with the ORIX Group and enhance the medium-to-long-term value of its investment units. The initiative is expected to strengthen sponsor support and clarify ORIX’s commitment to expanding its asset management business.

The most recent analyst rating on (JP:8954) stock is a Hold with a Yen180000.00 price target. To see the full list of analyst forecasts on ORIX JREIT Inc. stock, see the JP:8954 Stock Forecast page.